SEBI summons Subrata Roy; HC bars Sahara from raising funds

Mumbai/Shimla: In a double blow to Sahara, SEBI on Tuesday summoned group chief Subrata Roy on April 10 to finalise list of assets to be sold for Rs 24,000-crore refund to investors, while the Himachal Pradesh High Court restrained five Sahara entities from raising money from the public. Roy and three other top executives of the group have been asked to appear personally before the market regulator, after submitting details of their assets, bank accounts and tax returns by April 8, SEBI said in an eight-page order.

Posting the matter for further hearing on April 22, the High Court in its interim order said that the complaint against these five entities can be further investigated by the banking regulator RBI and capital markets watchdog SEBI. It also referred the matter to the Enforcement Directorate.

The SEBI's action follows non-compliance by Sahara group to orders passed by the Supreme Court for refund of an estimated Rs 24,000-crore to about three crore bondholders of Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corp Ltd (SHICL).

Sahara has so far paid Rs 5,120 crore to SEBI towards the refund and claims that this amount itself is higher than the total outstanding dues of the two firms' bondholders. Earlier this month, SEBI also approached the Supreme Court seeking arrest of Subrata Roy and bar on his leaving the country in connection with the ongoing case. The apex court has posted the matter for hearing in first week of April.